Headlee requires GC school district to lower tax rates

The total reduction is .5286 mills of the total 24.9 mills levied by the district. That means on a house valued at $150,000 the taxable value is $75,000 and the tax decrease is about $37.50.

Garden City property taxable value went up more than inflation, which means the Headlee Amendment is applicable and the school district had to reduce the millage, explained Drew McMechan, the district’s chief financial officer.

The schools saved $2.5 million this year by refinancing bonds issued in 2002, McMechan said.

“We were lucky the interest rate was low,” he added.

The change in debt retirement millage rates represents a decrease of .5 of one mill from the 2015 tax levy.

The tax rate also includes a decrease due to lower debt in 2016 combined with a healthy projected fund balance, McMechan said. The debt was refunded in February 2016, “which will result in lower millage rates in the future, as well.”

Meanwhile, the district has been operating with a negative fund balance since the 2013-14 school year.

In 2014-15 the deficit grew to $3.1 million. This year the fund balance is at a $1.2 million negative balance and next year it is projected to be $400,000 in the red. The district is expected to have a positive balance in the 2017-18 school year.

“The decrease in the deficit is due to the sacrifice of the employees in the district and through concessions of collective bargaining,” McMechan said.

The bargaining units gave up about 15 percent in wages, benefits and lost positions that began in the 2015-16, he added.